Ethereum Whales Accumulate Amid Bearish Sentiment, Potential Reversal Ahead
1min read Ethereum sentiment has reached its lowest point in a year, but recent whale activity and network upgrades suggest a potential reversal. Despite the current bearish outlook, significant whale accumulation might indicate renewed confidence among institutional investors. Extreme bearish sentiment is often followed by a market rebound, making this an optimistic period for contrarians.
Ethereum has been characterized by a descending wedge pattern, facing a prolonged downtrend over recent months. As it tests the wedge’s lower boundary, recent trading data indicates a potential rebound. Should ETH sustain its upward trajectory, critical resistance areas at $2,540 and $2,847 deserve particular attention. A breakout beyond these thresholds could indicate a bullish reversal, with potential targets of reaching $3,476 in the near term. Conversely, any failure to hold support in the $2,200–$2,100 range may trigger further declines towards $2,000.
Recent on-chain analyses indicate a 4.75% uptick in large transactions, signaling increased interest from institutional investors. This rise often aligns with price recoveries, as major players tend to accumulate assets during times of market fear. When large investors gather ETH at essential support levels, it can lead to a supply squeeze, potentially igniting bullish momentum. If this pattern continues, Ethereum could witness significant price movements, challenging key resistance levels.
Notably, there has been a persistent increase in daily active Ethereum addresses, which reinforces the idea of heightened network activity. In the last week alone, new addresses grew by 2.96%, while active addresses saw an uptick of 2.89%, and zero balance addresses increased by 2.27%. This upward trend in active addresses often precedes price recoveries, reflecting greater user interaction with the Ethereum network. If sustained, this may position Ethereum favorably for future growth.
In other developments, Ethereum’s Pectra upgrade has been successfully implemented on the Sepolia testnet, representing a significant milestone for the blockchain. This upgrade is designed to optimize staking, improve scalability, and serve as a pathway for future adoption of staking-integrated ETFs, targeting institutional investors. However, reports of technical issues with the Holesky testnet upgrade have caused delays. Should these concerns be adequately addressed, it may attract increased investor interest and elevate network activity. A successful 